Runda Medical enters POCT: the whole product line + strong channel platform synergy
Recently, the company intends to invest in Response Biomedical Corp (RBM) with a cumulative total of no more than US$6 million (approximately RMB 39.6 million), approximately 43.1% of the shareholders' equity (ie an overall valuation of RMB 92 million). RBM's RAMP products are excellent heart marker POCT products, and the Chinese market is the main battlefield for its sales. RBM is based in Canada and is involved in the development, production and sales of POCT related products. The main products are RAMP series rapid diagnosis system platform. The testing project covers 5 cardiovascular diseases, 2 infectious diseases, 5 biological protection and 2 environmental monitoring. The platform can quickly diagnose acute myocardial infarction and heart failure. The competitive advantage lies in fast, sensitive, accurate, portable, large-capacity storage, and field use. It can help hospitals speed up medical efficiency and improve patient prognosis. In 2015, the company realized a profit of 15.42 million US dollars (+40%). The RAMP series products entered the Chinese market with the first imported approvals in 2008. It is estimated that the Chinese market accounts for about 60% of its sales. The heart mark market is the fastest growing POCT market segment with great development potential. POCT has many advantages in detection time, space and operation. It is an important development direction and the fastest growing field in the in vitro diagnostic industry in recent years. It is estimated that the global POCT market will be about 14 billion US dollars in 2015. The heart marker is the fastest growing POCT market segment, which is the fastest growing segment in the POCT market segment. It is estimated that the current global sales volume is about 2 billion US dollars, with an average annual growth rate of 14%. Due to the aging of the population, grading diagnosis and treatment and other factors to promote the rapid development of the POCT heart mark market, we expect the domestic market size in 2015 to be about 1.5 billion yuan, with a growth rate of more than 30%. Runda's acquisition of RBM will achieve a synergy of 1+1>2, and the profile of platform-based enterprises is increasingly obvious. The company has previously increased the capital of Beijing Runnuos to deploy chemiluminescence and increase the capital of Wuhan Haijili layout molecular diagnosis. After the acquisition of RBM, it will initially form a full product line layout covering in vitro diagnostics of biochemical diagnosis, immunodiagnosis, molecular diagnosis and POCT. Self-produced products can achieve rapid increase based on their own channel advantages. In addition, more than 60% of RMB's revenue comes from the Chinese market, which means that relying on the advantages of Runda channel will achieve greater synergy. Earnings forecasts and investment advice. We predict that EPS will be 0.40 yuan, 0.51 yuan and 0.62 yuan after the issuance of diluted shares in 2016-2018, corresponding to 66 times, 51 times, 42 times for PE. The company's whole package business conforms to the trend of medical reform and hospital appeals. It is the clear benefit of the current medical reform environment. It has long cattle genes and is firmly optimistic about the company's development. At the same time, we will continue to meet the meeting, and the large shareholder will increase its holdings and the employees' shareholding will not adjust the price to show the confidence of future development. We maintain the “Buy†rating. Risk warning: off-site expansion is lower than expected risk; working capital shortage risk; additional issue is less than expected risk. 7 Inch Biometric Tablet,7'' Android Biometrics Fingerprint Tablet,7-Inch Rugged Industrial Tablet,7'' Android Fingerprint Rfid Tablet Shenzhen BIO Technology Co.,Ltd. , https://www.huifantech.com